Tim Ingham, the editor of Music Business Worldwide, has stated the music industry in the United Kingdom needs tax breaks if it is going to encourage a new generation of rock stars. Tax breaks are already in place for some creative industries including filmmaking and animation, however, no such tax breaks exist in the music business.
In an interview with Team Rock, Ingham criticised a recent report from the Department of Culture, Media and Sport. While the report states that creative industries in the UK are worth more than £8.8 million an hour, and that employment is increasing in the music industry, Ingham still feels that the report doesn’t give a true impression of the business, specifically the role that artists and repertoire staff play.
Commenting in the Team Rock interview, Ingham said:
“The last few years has seen tax breaks introduced for creative industries in the UK such as video games, TV and animation – the movie industry has had one for years. This in turn helps create funding for the grassroots of these projects.
“The music industry doesn’t benefit from those tax breaks and it absolutely should. The most obvious way to apportion such tax relief would be to A&R – the extra money would allow record labels and publishers to give more new acts more investment to develop their sound and song writing.”
Ingham explained to Team Rock that if there had been more information regarding the value that A&R adds to the music industry, it would be easier to make the case for tax breaks in the music business.
As part of the report, Sajid Javid, Secretary of State for Culture, Media and Sport the U.K.’s creative industries were recognised as world leaders and pledged continued government support the for the creative industry, however, the report neglected to detail the support that is in place to encourage a new generation of up and coming musicians.